There is millions of small scale business in Nigeria you can start today. In fact, just look around; you’ll see a lot of small scale businesses going on. Unlike other post you’ll find on the internet, which provides you with list of small scale businesses you can start today.
I’m not just going to provide you with the list of small scale business in Nigeria but I’ll like to discuss problems associated with small scale business in Nigeria and possible way out.
This is because if you can understand the problems and how to solve them, then you can do any small scale business in Nigeria perfectly.
Small Scale Business in Nigeria – Problems
There are 4 basic problems that stop people from making much money from small scale business. They are:
- Lack of management skill
- Government polices
Most Nigerians have the mindset of establishing small scale business just to make feeding money from it. They never think of starting small and making it big. The reality is that, most big businesses you see today started very small.
Therefore, if you’re considering going into any small scale business then have a very large mindset. You should start and believe that, that small kiosk can grow to big supermarket. Or that small okirika business will turn to large boutique and many more.
2. Lack of Management Skills
Statistic has shown that 90% of small scale business established by Nigerians parks up within first 5 years. The reason for that is that most people lack the required management skills needed to run a successful small business. There are 3 management skills you need to acquire if you really want to succeed. They are:
- Market research
- Building a structure
- Learn to delegate
If you really want to grow a small scale business in Nigeria to medium scale business, then you must learn how to do proper market research. Conducting a good market research will help you know if the market is saturated or not.
Above all, doing a good market research will help you identify your potential customers and how to attract them.
Building a business structure is another area of management skill you need to acquire. This will help you know who and who will be your partner(s). No one can do it alone. Therefore it’s wise you carefully select who to work with.
Additionally, another management skill you need to develop is the ability to assign duties based on capabilities. If you give the right job to the right person then your small scale business will grow faster.
3. Government Policy:
I would have placed this problem first on the list because government plays very big roles in helping businesses grow. But I insist placing it third because I found out that if a man is determined, nothing stops him.
Therefore, you are the one to determine if your business will grow or not. That doesn’t mean I will not touch some of the government policies that affect small scale business in Nigeria.
Multiple taxations are one of government policies that negatively affect small business in Nigeria. Additionally, there is little or no security in most cities of Nigeria, which makes establishing and running small scale business difficult.
Another major problem created by the government is the power issue. Most small scale businesses in Nigeria depend on power to work effectively. But that is missing, which makes running a small business difficult and expensive in Nigeria.
4. Lack of Capital
Sourcing for fund is another major problem most Nigerians that operates small businesses face. Loans are very difficult to access. Even if you can access loans they come with high interest rate.
Therefore, most small scale businesses in Nigeria don’t see the light of the day due to lack of capital and cash flow.
Small Scale Business in Nigeria- Solutions
Solutions to the problems associated with small scale business in Nigeria are simple. It all starts with you. What is your vision before going into any small business in Nigeria? Are you thinking of starting it small and growing it big?
If you are just after money for feeding or money for housekeep then you should consider going into trading. Business goes with lot of challenges therefore you must be prepared to make it work at all cost.
Lack of management skill
To do away with this problem I strongly encourage you to take a course of business management. There are some quality business management courses you can take online free of charge. managementskillscourses.com is one of such sites where you can learn how to manage you small scale business like a pro.
We have little or no control over this problem. Though, some organized trade unions have been working assiduously to get government sit up. So, we only hope that one day the right thinking person will be at the helm of affairs.
The first capital I usually suggest to people to build business is integrity. Honesty and transparency is the number one capital you need in order to run small scale business in Nigeria.
This is because there are lots of people out there that are willing to give you all the support you need as long as you’ve the track record of being honest and transparent.
Having these qualities attracts investors who will give you the required financial support with low interest rate.
Small Scale Business in Nigeria-Wrap Up
Obviously, there are thousands if not millions of small scale business in Nigeria you can start now. Your success does not depends on the one you choose rather it depend on how you run it.
Identifying the major problems associated with small scale business in Nigeria and having solutions will help you succeed in any area.
Above all, your success largely depends on your determination to succeed. It is only your determination will see you through when government policies are hostile to you. It’s only determination will make you start even when all things are not ready.
Hope you enjoyed reading this piece. Kindly share and leave a comment because we all can change our situation from bad to best.